Home Buying Process

What every homebuyer needs to know.

The process of searching for the right home loan, the perfect house, negotiating the contract, home inspections, appraisals, closing and moving can be a complex and sometimes confusing process - especially the first time around. Having an experienced Murney Associate agent will ease your first time home buying experience.

Many of our Murney agents say they take delight in helping first-time buyers achieve their dream of home ownership. A number of our associates are Accredited Buyer’s Representatives (ABR) and have completed advanced courses and are certified to assist buyers with their unique needs.

Getting pre-qualified for a home loan is the first initial step needed before moving on to viewing properties. Your Murney agent has access to many lending institutions that will meet your loan needs. Here are a few mortgage basics:

Get prepared financially: review your credit scores, correct any errors, and gather recent bank statements, W-2’s, 1099’s and 2 years of tax returns (if self-employed). These will all be needed for your lender. Having all of this information upfront makes the process smoother.

Down payments will range from 0% to 20% depending in your qualification or loan program that you chose.

Most mortgages are 15 to 30 year loans.

Interest rates can be fixed or adjustable. Adjustable rates are less interest for the first few years, but may increase over the life of the loan. Fixed rates do not change.

Lenders use ratios to determine mortgage amount. Typical payment, insurance, and taxes generally do not exceed 30% of the gross monthly income and total monthly debt cannot exceed 40%

Here are 3 major things of what NOT to do when going through the home buying process while getting a home loan.

DO NOT open up new lines of credit. This includes: credit cards and store credit.

DO NOT go out and buy furniture, a car or high end items especially on credit cards. You need to keep as much funds in your accounts as possible till closing day.

DO NOT transfer money between accounts, 401K’s or IRA’s without proper paperwork.

Now that you have financing in place your Murney agent will help assist you in searching for a home that fits your needs. Your agent will set up an email alert system we call Search Assistant with criteria for your new home. You will receive “real time” or daily alerts on properties. Once you make a list of homes to view, your agent will spend as much time as needed to find the right home for your needs. When ready to make a purchase offer, your agent will present the offer to the sellers agent and help negotiate the final contract.

Finally, your Murney agent will walk you through all the steps needed to complete the transaction, and afterward, give you the keys to your new home.